Oil Agreement Delaware Basin Assets Acquired by Oasis Petroleum for 946 Million Dollars
The company has entered into a definitive purchase and sale agreement with Forge Energy to acquire 20,300 net acres in the Delaware Basin. The acquisition is expected to close in February 2018.
Texas/US – The US-based petroleum and natural gas exploration and production company, Oasis Petroleum has recently announced that it has entered into a definitive purchase and sale agreement with Forge Energy to acquire 20,300 net acres in the Delaware Basin (the Permian Assets) for approximately 946 million dollars, consisting of approximately 483 million dollars in cash and 46 million shares of the company’s common stock (the OAS Shares) valued at approximately 463 million dollars as of the close of trading on December 8, 2017.
The acquisition will be funded through a combination of the OAS Shares issued to the Seller, a draw on the company’s revolving credit facility, and/or capital markets transactions, depending on market conditions. Additionally, Oasis expects to divest non-core Williston Basin acreage up to 500 million dollars in 2018.
The acquisition has an effective date of December 1, 2017 and is expected to close in February 2018, at which time the owners of the Seller will receive full consideration less a deposit paid. The transaction is subject to customary closing adjustments and conditions.